Q4 2024 Zomedica Corp Earnings Call
Thanks for watching.
Speaker Change: Good afternoon ladies and gentlemen and welcome to the Azumetica 4th Quarter 2024 Financial Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance, please press tar zero for the operator.
Speaker Change: This call is being recorded on Thursday March 13th, 2025. I would now like to turn the conference over to Mr. Mike Vallie from ICR. Please go ahead.
Mike Vallie: Joining me on today's call are Zomedicus Chief Executive Officer Larry Heaton, Scott Jordan, the company's new Executive Vice President and Chief Financial Officer, and Mike Zuehlke, Vice President and Corporate Controller.
Mike Vallie: Before we begin, we would like to remind everyone that on this call, we will be making various remarks about future expectations, plans and prospects that constitute for looking statements.
Mike Vallie: We refer current and potential investors to the forward looking information and risk factor sections of our public filings available on Cedar Plus at www.cedarplus.ca and on Edgar at SEC.gov.
Mike Vallie: for looking statements made on this conference call represents Dometica's expectations as of today, March 13, 2025. I will now pass the call over to Dometica's chief executive officer, Larry Heaton, Larry. Thanks, Mike.
Larry Heaton: That today, instead of following our normal order, I'm going to start by addressing our recent D-listing and our current party tap.
Speaker Change: Jeff Bezos coined the phrase, the company is not the stock and the stock is not the company. When Amazon shares 80% as the market adjusted in 2001, even while Amazon's operations were performing very well.
Speaker Change: Our share price is under significant pressure, if the company is performing well.
Speaker Change: As in each of the last 15 quarters, we're announcing today another record fourth quarter year over year. Barnets are up and we have over $70 million in liquidity. Your company is sound and is under no stress.
Still west up with the chair of Bryce.
Speaker Change: Well, as you know, in September of 2023, our share price fell below the 20th threshold for listing established by the New York Stock Exchange Emerging.
Speaker Change: We were told then that we had until March 2024 to regain compliance in less in the interim, the share price fell to an unacceptable level, in which case we would be immediately
Speaker Change: When the market fell over the last few weeks, our share price fell with it, ended up closing on March 3rd at a level that the NYSE American Exchange regulators determined was unacceptable.
Speaker Change: When it failed to open higher or climb the following morning, they halted training and announced via a letter to us and a press release on March 4th, the suspension of training and a commencement of delisting.
Speaker Change: Both Zomedica and the NYC American Exchange issued press releases to the form shareholders on that day. A copy of the exchange's letter to us is included as an attachment to our annual report on the form 10K file this afternoon.
Speaker Change: Prior to our g-listing, we identified the OTC-QB venture market as the most appropriate option for investors and ensure that trading would continue, essentially uninterrupted as we transition to the new platform on March 5th with a new ticker symbol, ZOMDF.
Speaker Change: We recognize that the share price fell considerably since we moved to the OTCQB market.
Speaker Change: Well, we can't pinpoint the exact reason for the decline. It was likely some selling from institutional investors who are unable or unwilling to hold OTC quoted stocks.
Speaker Change: In addition, we suspect that there were shareholders who moved out of their position due to speculation that the company is under distress. [inaudible]
Speaker Change: Investors who are currently buying or considering investment, see the dislocation and value between our market cap and the values of medicine can create. They recognize what we've built over the past three and a half years and where we're headed.
To that end, the Zomatic Investors, I'm sorry, Zomatic Insiders.
Speaker Change: Who are heavily invested in the company have been restricted from trading since December 16th.
Speaker Change: Now I'll take questions on this topic after our prepared remarks. But for now, let me shift gears and turn to an update on our recent operational performance followed by a financial update from our Vice President and Finance and Corporate Controller Mike Zuehlke and comments from Scott Jordan, our new Executive Vice President and Finance and Chief Financial Officer before opening the line for questions.
Speaker Change: We delivered revenue of $7.9 million for the fourth quarter, reflecting eight percent growth over the prior year quarter, driven by year over year growth at both our therapeutic devices and diagnostic segments.
Speaker Change: This was the 15th quarter in a row that revenues that new quarterly highs a trend that we expect to continue.
Speaker Change: The strong performance of the fourth quarter that will fully hear 2024 revenue of 27.3 million for a record year for the company.
continued solid performance in our therapeutic devices segment.
Driven largely by our well-established leadership position with Paul Svedd
Speaker Change: To review these, I'll start with a focus on commercial expansion.
Speaker Change: One of the most exciting commercial efforts we undertook during 2024 was international expansion.
Speaker Change: With the recene of seeing marketing from multiple products including true form, true view and
Speaker Change: Our entire portfolio is now eligible to be sold into markets and EU, as well as other countries that accept the CE mark.
Unknown Speaker, Unknown Speaker,
Speaker Change: How many of our entire product portfolio available for sale across the EU and other key geographies, as well as an expanded commercial footprint across global markets, represents incremental revenue opportunities that we haven't had access to previously, and this should help drive top line growth in the business.
Now, pulse set remains our leading product.
Turn into a CC.
Yeah, this quarter.
Speaker Change: Next up is true form. We saw a significant evolution during 2024.
Speaker Change: which we delivered on during 2024. We launched five new assays during the year, including equine cortisol, canine antebrachrobium P, and progesterone, enhanced equine ACTH, and a quantitative equine insulin assay.
Drone, Drone, Drone, Drone, Drone
Turning to True View
Art Digital Microscope and Pathology Platform
Speaker Change: During a year we launched upgrades to the functionality of the system, including the introduction of hardware enhancements which delivered dramatic improvement in the speed of imaging.
Speaker Change: We're in the process of finalizing our infield testing and we'll launch the upgraded system a little later this year.
Speaker Change: The effect of the various enhancements to both hardware and software of the TrueView system is to allow it to lay claim to being the fastest digital microscope available.
Speaker Change: The digital microscope with the highest quality image and the only digital microscope that automatically prepares the slides.
Speaker Change: As a result of growing demand from multi-system customers, we expanded the capability of our myosomatic apportal to be able to accommodate more than the previous eight that garnered monitors at one time on one screen. I think we have anecdote that has 11th currently installed.
Speaker Change: As you can tell, we're very excited about the progress we made and expand in the applicability of our portfolio. We made another exciting announcement in early 2025.
Speaker Change: The agreement grants us exclusive rights to distribute better gel, hemostatic gel in the United States, and an honest exclusive right to distribute it in the rest of the world.
Speaker Change: This is a significant agreement as an adds an additional novel technology to the backs of our commercial organization, but also expands the medical portal portfolio into new care areas within veterinary practices.
Speaker Change: Fettichel's an invaluable tool for vets, and this partnership with Crestlin allows us to expand the reach of the revolutionary product and be yet another cutting edge solution under these Omega umbrella.
Speaker Change: Now I'm turning to an operational update. Over the last three years, we've invested in our infrastructure to be able to accommodate growing demand for our products while at the same time allowing us to approve efficiency and reduce costs as we continue to scale
Speaker Change: We had several key milestones during 2024 and earlier this year. In June of last year, we completed the expansion of our global manufacturing and distribution facility in Roswell, Georgia.
Speaker Change: This line is currently live, producing all of our true form of assays. This new line improves manufacturing efficiencies, allowing us to realize cost benefits to further improve our gross margins in the future.
Speaker Change: As you've just heard, 2024 was a transformative year for Zomedic. Our efforts across R&D, regulatory, commercial, and operations allow us to deliver a strong year while setting ourselves up for success as we move it into 2025.
Speaker Change: So before turning to a financial update, I wanted to introduce Scott Jordan who joined the company at the start of 2025 as our executive vice president of finance and CFO .
Speaker Change: Scott brings over 30 years of experience and financial leadership within the life sciences and diagnostic industries to Zomaticum, with extensive expertise in the organizational management strategic finance, business development, and product commercialization.
Speaker Change: His background and skill set will be invaluable as we continue our growth trajectory in the animal health space. We're excited to have them on the work.
Speaker Change: We'll hear from Scott in just a minute. The first I'd like to turn the call over to our Vice President and Finance and Corporate Controller Mike Selley for our Financial Update.
Speaker Change: Student Professors of Managing theitude of the vomitting Community Center during the pandemic. Thank you to all our responders, teachers, staff and staff personnel for their excellent efforts. We are very grateful to you. We hope you continue to vow your strength to view and embody this virtual experience. For transmission we will be including our virtual student extended outlet on another event to help providers remain on-line for
Larry Heaton: Thanks Larry, and good afternoon. I would like to quickly echo Larry's gratitude for our shareholders and their support. We'll also welcoming prospective investors, analysts and others of the call.
Speaker Change: With that, let's begin our financial update with an overview of the fourth quarter.
Speaker Change: driven by growth across the portfolio, highlighted by a 109% year-over-year increase in our
Speaker Change: Capital revenues in the fourth quarter were $3.3 million as we continue to execute our whole-spec commercial strategy.
Speaker Change: In the fourth quarter, consumable revenue was $4.6 million dollars, an increase of approximately 13% over the prior year quarter.
Speaker Change: That represented approximately 58% of total revenue in this quarter, largely a result of the growth in capital equipment sales throughout the year, which again provide a new stream of consumables revenue after installation. Thank you very much.
Speaker Change: Therapeutic Devices, Segment Revenues from Pulse Fitness CC Products, were $7.1 million and Diagnostic Segment Revenues were approximately 800,000. Again, an increase of 109% over the prior year quarter, driven by the growing adoption of recently launched Trueformer SAs and solid contributions from both our TrueView and BetGuardian product lines.
Speaker Change: In the quarter, Dros Margin was 70.3% which exceeded our previously stated target range of 65-70% for a third consecutive quarter.
Speaker Change: Total operating expenses were $13.7 million, a decrease of 17% over the prior year court.
Speaker Change: Sales and marketing spend was $5.3 million, a 23% increase over the prior year quarter. Primarily due to increased sales force headcount and the commission expenses associated with a record revenue quarter.
Speaker Change: General and administrative expenses were $6.3 million, down approximately $2.8 million compared to the prior year of order, driven by integration costs of our QBT acquisition and professional support fees incurred in 2023 that did not recur in 2024.
Speaker Change: non-GAAP Evid Outlaws, which includes adjustments for stock compensation, was $6.1 million.
Speaker Change: Our adjusted operating burn of 4.2 million is consistent with our Q3 burn and a continuation of the positive trends in cash we highlighted last quarter.
Turning to a brief overview of the full year.
Speaker Change: Total operating expenses, exclusive of impairment charges taking in the fourth quarter of 2023 and the second quarter of 2024 were 54.5 million, up from 48.9 million in 2023, an increase of 11%.
Speaker Change: This increase was primarily the result of increases in R&D relating to our QBT acquisition and continued development of new assays and ongoing development of existing and new products.
Speaker Change: Non-depth EBITDA loss, which includes adjustments for stock compensation was $40.7 million.
Turning to the balance sheet.
Speaker Change: Zometica maintained its strong liquidity position ending the year with 71.4 million in cash, cash equivalence, and available for sales securities.
Speaker Change: Cash used in the year was approximately 29.1 million, and when adjusted for non-recurring one-time items, non-GAAP operating cashburn was approximately 20.4 million dollars.
Speaker Change: Posting continued solid gross margins and reducing our operating expenses while stabilizing operating cash burn.
Speaker Change: Our common shares will now be trading on OTCQV market. The value of the company's assets and opportunities for growth remain the same. Rest assured, we are aggressively evaluating all potential pathways available to us to remedy the share of price and move back onto a major
Speaker Change: The eye continues strong execution, we, alongside our team of advisors, are currently conducting an extensive process.
Speaker Change: The goal of this process is to identify what action or actions we can take.
Peter Donato: that would allow us to bring our share price up to a level which would not only satisfy the requirements needed to upless.
Peter Donato: Back to a major exchange but also put us in the best position to unlock as much value as possible once there. We look forward to sharing what actions we will be pursuing once they have been fully vetted and agreed upon by our management team and our Board of Directors.
Peter Donato: I look forward to building relationships with you as Omega works diligently towards supporting our stock price through the launch of novel investor forums.
Peter Donato: Including a webinar series designed to highlight our innovative product portfolio, introduce key personnel, showcase manufacturing capabilities, and educate investors and strategic partners of the company's long-term growth strategy.
Peter Donato: This informative webinar series will be offered on the third Thursday of every month, beginning in April to provide a front row seat.
Larry Heaton: With that, I'd like to turn the call back to Larry for a look forward. Larry?
Thanks God.
Larry Heaton: We're very excited about the opportunity that exists for Sermon again in 2025.
Larry Heaton: With the work done in 2024 and some of the compelling developments announced early this year, we believe that we are very well positioned to deliver accelerated revenue growth and demonstrate operating leverage.
Larry Heaton: During the year, we'll be focused on a number of key revenue growth catalysts.
First, our continued portion to the equine market.
Larry Heaton: We've established ourselves as a leader in the care of horses when falsified it.
Larry Heaton: He's included, accelerate an adoption in the equine market through the addition of the second equine professional services veterinarian and an additional equine sales director.
Larry Heaton: Increasing utilization of full-set troves by equine veterinarians as they apply it to the treatment of equine asthma, which affects 15% of horses over seven years of age, supported by positive clinical data and ongoing clinical studies, and a launch shortly of an equine asthma clinical registry.
Larry Heaton: Driving the growth of new equine thruforma assays, such as EACTH, for pushing stagnosis.
Larry Heaton: Hanselman for Diagnosis of Equine Benevolent Disorder, Cortisol for Distressed Fools, and Rechesterone for Breeding, and the launch of Bedguardian for Stoltside Use.
Second
Continue to international expansion and revenue capture.
Larry Heaton: In addition, we continue to work towards the introduction of our diagnostic products in the Japan during the year, which will join the equine pulse cut systems already on the market in Japan, and will be directed at the 12,600 companion animal veterinary practices in that country, which is about one-third of the size of the U.S.
Thank you.
Borg.
Speaker Change: With a recent agreement to distribute Vettigel, we'll be able to tap into a new revenue strain. We've trained our Salesforce on the technology and expect to see increasing contribution from Vettigel as we live throughout the year.
Speaker Change: The addition of dedicated capitalist women specialists will work with our full-line salespeople to accelerate the adoption of our close-up that guard in and alter sound products.
Speaker Change: And last, to capture share from large veterinarian groups. We've added a corporate palace director entirely focused on multi-practice groups who have the potential to adopt and utilize our entire product portfolio on a large scale.
Speaker Change: Now that we've reached critical mass with respect to being able to significantly impact, not only the quality of care and pet parent client satisfaction at their clinics.
Mike Zuehlke: But significantly also to possibly impact their clinics workflow, hash flow, and profitability, we're ready to address them now on a corporate level.
Mike Zuehlke: Along with accelerating top-line growth, we expect to see the benefits of our optimized infrastructure.
as we continue to scale the business.
Mike Zuehlke: We plan to reduce operating expenses in 2025 relative to 2024.
Mike Zuehlke: and see these expenses continue to decline in the future as a percentage of revenue.
But an absolute reduction in 2025 versus 2024.
Mike Zuehlke: This will produce operating leverage and move us closer to our goal of being cash low positive at a run rate of $50 million.
Mike Zuehlke: We will remain opportunistic as we evaluate business development opportunities which fit within our portfolio and would help drive both increased revenue and improve profitability. Get us to catch a little break either soon.
Stone, what about the share price?
Mike Zuehlke: I'd like to thank our employees for their dedication and our customers who trust us to help provide the best possible veterinary around care around the world and most of our shareholders for your support.
Mike Zuehlke: With that, I'd be happy to open the line for questions.
Operator
Speaker Change: Ladies and gentlemen, we will now begin the question and answer portion.
Speaker Change: Should you have a question? Please press tar followed by the number one on your touchstone phone. You will hear a prompt that your hand has been raised.
Speaker Change: Should you wish to decline from the polling process, please press star followed by the number two.
Speaker Change: If you're using a speaker phone, please make sure you lift your handset before pressing any keys.
Speaker Change: Your first question comes from the line of Robert LeBoyer from Noble Capital Markets. Please go ahead.
Speaker Change: Congratulations on all of the progress you've made with the product introductions and everything else.
Speaker Change: First of all, nice to hear from you, Robert. Thanks for the call and question. Yes, we do have a number of products that we expect to launch this year.
Speaker Change: So, with respect to true formal, we expect to launch another 5-6 assays over the course of the year. These will be a mix of T9, B-line and B-line assays.
based on their run.
based on their specialty.
Speaker Change: We launched Equal Loop, this is an ACC loop that is focused on forces. We launched that in December , so not
Speaker Change: Not actually a 2025 launch, but all but it's a new product for this year. Ben Angelic Horse, we launched this year. Also for CC, we have a new version of our Loop Lounge.
Speaker Change: and I think that pretty much covers it. We have a number of new products and and product extensions and so on to move out the door.
Speaker Change: Okay, great. And one of the things that had come up in previous quarters was the realignment of the sales force and the restructuring for the future products. You kind of implied.
Speaker Change: Yeah, so I'm happy to comment on that. So our overall head count is essentially flat year over year.
Speaker Change: The Salesforce, in addition to the 38 sales territories that are that are filled by account managers, we also have
Speaker Change: In addition, we augmented our equine force. We had only a couple of people focused on equine and we've added another professional services bed.
We've added an additional resource for equine beds.
and this is because...
Speaker Change: We have new products to put in front of equine vets.
Alright, so we've traditionally sold them, Paul Spat.
Peter Donato, Robert LeBoyer,
Speaker Change: They are looking for the same thing that individual vets are looking for. They're looking for revenue growth. They're looking for growth in income.
Speaker Change: And so it's tough when we first started out three and a half years ago and all we had were three assays for two formal. It was tough to get their attention.
But now we have products that address their challenges.
Speaker Change: and the other products that provide a more efficient and less costly way of doing things that they have to do anyway, along with a significant improvement in the workflow that addresses staffing issues. So, with the right person on board now, we expect that we'll be able to start penetrating into a more efficient way of doing things that we'll be able to do anyway, and we'll be able
And...
Speaker Change: We are developing our thoughts around the magnitude of our sales growth this year and once we have got that sort of buttoned up then.
Speaker Change: And we have a little more time under Scott's note than we'll provide that later in the year.
Okay, great. Thank you very much.
You're very welcome.
Speaker Change: Your next question comes from the line of Robert Sassoon from Water Tower Research. Please go ahead.
Speaker Change: I think we saw similar growth internationally and within the U.S. It was within a narrow bad width. We saw good growth both outside the U.S. and inside the U.S. I think.
Speaker Change: that we can tell, other than timing of orders and stuff, so apart from Canada, we saw a higher growth than in the US.
Speaker Change: which is pretty close to what we saw from, you know, other domestic animal health care companies. I mean, we look at how they're doing and, you know, 8% even though some of them are getting a substantial portion of that from a price increase.
Speaker Change: You know, most of our sales are to new customers and so, you know, we don't have that year over year benefit, but, you know, if you look at the other animal companies pretty similar. [inaudible]
Speaker Change: So, what is the actual mix now between revenues domestic and revenues internationally, I mean what's the, the product is presuming it's presumably US, but do you have a breakdown?
Speaker Change: So it depends of course on the rate of growth. If we look at just outside of North America.
Speaker Change: New on the sales of new systems, right? So most of our international sales
Speaker Change: Well, they're essentially all at this point, either a pulse virus CC or more, most recently a vicarity in which we launched successfully in an international market last year. The big chunk of our business, of our pulse that business about it.
Speaker Change: That refurbishment, we don't think will be affected by any kind of terror situation, because
Speaker Change: This is what they need to be able to use the technology they have to use the product.
Speaker Change: Alright, I think you answered my third question, I was going to ask about Paris, but so...
Speaker Change: When you, if you look at your financials, you hadn't non-GAAP .
Speaker Change: I think it's probably a bit aggressive to think that we'll get to a run rate of $50 million a year, which would be just shy of double last year's revenue.
Speaker Change: You know, nothing's impossible, but I'd say that's probably a little, I wouldn't put a stake in the ground for that at this point. Right, okay. All right, well, thanks. You seem to have, you know, most of the stars are lined in your favor, so good luck.
Speaker Change: Thank you for that. I'll just make one of their comment on tariffs if I can and that is on the flip side.
Speaker Change: That is tariffs on products that we buy from outside the United States.
Speaker Change: We've done a pretty good end-up analysis and we get very few components.
Speaker Change: and we figure our exposure if they did 100% tariffs on China and 25% tariffs on the EU products.
Speaker Change: Our cost of producing our products by only around $20,000 for the year. So we're watching tariffs on the outbound side, on the inbound side, it's going to have a nominal immaterial impact on our cogs.
Okay, thank you.
Okay.
Speaker Change: Your last question comes from the line of Andrew Rem from Odinson Partners. Please go ahead.
Andrew Rem: Hi, gentlemen. Could you provide what your growth rate was on full set for the year?
So we, we have
Speaker Change: We break out growth rates by diagnostics and therapeutics. That's included in therapeutics which grew year over year.
Unknown Speaker, Unknown Speaker,
4%.
That includes the pulse vet products and the SCC products.
So...
Speaker Change: Well, as I mentioned earlier in the remarks, a CC had a little bit of a choppy year and during the year last year there was a point of time where
Speaker Change: That took some time to resolve, that was resolved. So, so that was a little choppy. I think overall, you know, capital sales last year were, you know, somewhat affected by the macroeconomic environment. There were, you know, a veterinarian.
Speaker Change: I mean, our strategy is to really rely on the revenue we're producing with our-
Speaker Change: We're relying on that revenue to fund our commercial operations in the near term while we build our diagnostic portfolio of products and we build that we increase the installed base.
Speaker Change: because in a year like last year when you've got veterinarians that are a little uncertain about the economy.
Speaker Change: Unknown Speaker, Unknown Speaker, Mike Zuehlke, Unknown Attendee, Mike Vallie, Peter Donato,
Until we get the diagnostic products.
Speaker Change: to overtake them in terms of revenue because then that the diagnostic revenue will provide a very solid and consistent stable foundation of revenue and the capital will be icing on the cake.
as opposed to this year.
Speaker Change: Currently, where the capital products like PostFat provide the foundation and when that gets a little choppy because of the economic environment and that makes everything a little choppy. Probably more than you asked for it, but ...
Yeah, no, I think I, you know, it's...
Speaker Change: Opposite is kind of in the near term key because of just a sheer size. So if that grows then the total business grows if it doesn't, it's a pretty stiff headwind for...
and your lifestyles for pulse back. Oh, for better show. Oh,
Yeah, they haven't disclosed that.
Publicly, and so I probably…
Speaker Change: Let me talk with them and see if there's any issue, but Cresselon is a company to develop this gel and they really had their focus especially going forward for or on I should say the human market. [inaudible]
Speaker Change: and they recently received FDA approval for this to be used for trauma.
Speaker Change: And so now they've launched it onto the market for human use and we they turned over the veterinary business to us and I would characterize their sales of the product before as
Speaker Change: And so will you be able to get a 70% gross margin on that product as well?
Speaker Change: We haven't broken out margins, but I think you probably could figure that if it's a product that we're not manufacturing ourselves, that we probably won't do as well on margin with that product as we would with products that we do manufacture ourselves.
Speaker Change: Okay, so to make sense, it's successful. It would have a lower roast margins and similar selling
Speaker Change: Well, no real incremental selling expense. This is going in the bags of our existing sales people. We're not, we're, we've hired zero people dedicated to vetichel. We haven't added any heads in marketing to focus on vetichel.
Speaker Change: It's not necessary for us. We just put it right into our bag and we put it into our booth at the convention and so on and it's it's working out pretty well.
Speaker Change: All right. And then just I want to get a clarification. You said on the capital equipment, you mentioned in your prepare comments, 38 sales territories, and then you said.
Speaker Change: You have, is it you have an objective? Do you have a capital footprint sale or a sales rep in each region and so far you have one? I just can't just clarify that comment.
Speaker Change: Sorry, I wasn't clear. Each region has, as of now, a capital equipment specialist in addition to, so that's five capital equipment specialists around the country. And they support 38 account, account manager, Charity Risk.
Okay, perfect.
Speaker Change: I guess my confusion, there's 38 territories, but there's only 5 regions, so yeah, that's perfect.
Under on the operating expense, you said...
Speaker Change: You're looking for that to come down over the year, or yeah, over the year on an absolute basis.
Uh, so just take that.
Speaker Change: I will say that first quarter is always a little cash heavy, as we have certain ended year payments that we make and so on. But throughout the course of the year, we will, we will see a decrease in the use of cash.
Speaker Change: That we're undertaken with respect to R&D that are now complete, don't need to be repeated.
There was quite a bit of expense associated with him.
Mike Vallie: Integrating the Corbobile Technologies Acquisition, which is now fully integrated.
Mike Vallie: But in addition to those things which we're just not repeating, we also, as I mentioned earlier, have reduced
Speaker Change: We have done in our planning to do to bring costs down and we'll certainly share those with you all as as they are rolled out. Thank you very much.
Speaker Change: A lot a lot was going on last year so I'm just kind of trying to get a sense for [inaudible]
Speaker Change: How he's feeling about the different systems processes he's put in place.
Speaker Change: because as I look at things, the numbers don't look particularly good, right? Second half, I know you had issues in the first half, but even the second half, you know, 10% ish growth, which was well off, what you guys were thinking through the...
Speaker Change: The second quarter was a quarter in which, as you know, we had some issues, those we addressed and then buckled down in the third and fourth quarters.
and I would just say...
Speaker Change: One of the things he mentioned to me yesterday was that as we sit here today, seven of the top ten reps in terms of revenue performance during the quarter so far are people that have come on board in the last year. [inaudible]
Speaker Change: So, and, you know, the rest of reps are doing okay, so...
Speaker Change: I think he's pretty pleased with where we are now, and I know I'm pretty pleased with his performance and expect that this year we accelerate. Last year was it, frankly, was a tough year for all of us in a lot of different areas and it was a year in which 10% growth was.
and we promoted them to Capital Equipment Specialists, we promoted, we promoted,
All right, well, thanks a lot. You guys appreciate it.
Speaker Change: All right. Thanks very much. Let's shift gears to the web now.
Speaker Change: And let's take the first question. I think maybe people might be interested in it. NYSE reported that this is from Justin Robbins.
But more importantly, trading would have been a halted.
during the appeal process.
Speaker Change: So chairs wouldn't have been able to be traded for a week. And then on top of that, we didn't have a basis for an appeal because it was very clear cut.
that our price was unacceptable. [inaudible]
Speaker Change: It didn't rise and so we've halted trading and you'll be delisted. The copy of their letter to us by the way is in the 10k we courage take a look at it if there had been any opportunity for us.
Speaker Change: We would have. As far as the other implication in the question, I won't respond to that.
Next question.
Speaker Change: We're undetermined how long it will take, but we are fully committed to doing so as quickly as possible.
Speaker Change: All right, thank you Scott. You have cash on the balance sheet, why not execute a share by back? And there's about 20 variations of that.
Speaker Change: Thanks, Larry. This is definitely one of the alternatives we are considering. So thanks for the question.
Unknown Speaker Okay.
Um.
Speaker Change: Not understanding and are concerned about bankruptcy or closing down the company or something like that and I would just say you know the stock is not the company and the company is not the stock. We're in very solid shape from a business standpoint.
Speaker Change: Plenty of liquidity, no debt, and a plan to get the profitability.
Speaker Change: So we're solid there, but having said that there's a related question, which what happens to my stock now that your OTC killed quoted? Scott, I want to take that one. Yeah, Larry, thank you. Yeah, on the face of it, nothing.
Speaker Change: Some will allow you to buy and sell, some may not. So please check with your brokerage to understand your options.
Okay.
Speaker Change: You mentioned that your increasing focus on the equine market is significantly smaller, doesn't like a good signal?
Or a good sign of small animal.
Speaker Change: And when all we had was pulse vet for the equine market, we left that alone and supported that, which is a few people in that organization, because frankly most of the equine pulse vests are purchased in the fourth quarter at a big trade show that they have.
Speaker Change: But as we have developed products for the equated market, now as account managers, instead of driving by the equine vet on their way from small animal to small animal practice, now they can stop by the equine vet and say, hi there, I'm your, I'm your poll vet rep.
Speaker Change: Oh, great. What else you got? And now we have something to sell them in addition. And the thing is, we have a good solid relationship with our equine vets. Remember, an equine vat uses our pulse set on average three times a week.
Speaker Change: And they go through three to four troads a year. That's 150 to 200 treatments that they're delivering with pulse that every year. And every time they go through 50 treatments, they send that that trode back to us, we refurbish it and then send it back to them. Well, we actually sent them another one. We replace it, but same, same impact either way. And that's all right.
Speaker Change: and so they're in constant communication with us, or we're in constant communication with them. We're involved with them. We've developed...
A Significant Reputation With Them
Speaker Change: Again, equine sales and post-fed drive the ability to deploy a sales force and support it with capital equipment specialists and marketing and convention, presence and so on and so forth as we develop the diagnostic product market and frankly further develop the post-fed market within the small animal area.
Let's see, is there a-
Um.
Speaker Change: So at this point, I think that's that's covered and we're kind of out of time. I will.
I will then just start.
with Ken Bye.
Speaker Change: We're going to build this company and we're going to get it profitable and eventually we'll pop up list to a major exchange and if all the
Speaker Change: If all of the things come together as we think they will be, then we believe that the inevitable result of that would be an increase in the share price.
Unknown Speaker, Unknown Speaker,
Speaker Change: Let the market set surprise. So in closing, we're bullish.
Speaker Change: Remember, you don't realize any losses on a stock and less than until you sell it?
It's a personal decision for everyone and all shares.
Larry Heaton: So at the end, let me just thank you again. Let me thank you to shareholders for your support and the other participants for your interested Zomedica. As always, I'm happy to speak to any of you that have questions. Feel free to reach out to me at leatonasomedica.com. And with that, thank you very much. Operator and code bell. Thank you very much.
Speaker Change: This concludes this conference call. Thank you very much for your participation. You may now disconnect.
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